Builder And Owner Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Builder And Owner Agreement

"I need a Builder and Owner Agreement for a luxury residential compound development in Riyadh, with construction starting March 2025, including specific provisions for high-end finishing materials and smart home integration requirements."

What is a Builder And Owner Agreement?

The Builder And Owner Agreement is a fundamental legal document used in Saudi Arabia to establish and regulate the contractual relationship between property owners and construction contractors. This agreement is essential for any construction project in Saudi Arabia, whether residential, commercial, or industrial. It must comply with Saudi civil law, building regulations, and Sharia law principles while protecting both parties' interests. The document typically includes detailed specifications for construction work, payment terms, timelines, quality standards, and dispute resolution mechanisms. It's particularly important in the Saudi context due to specific local building codes, environmental regulations, and business practices. This agreement serves as the primary reference point for managing construction projects and resolving any disputes that may arise during the construction process.

What sections should be included in a Builder And Owner Agreement?

1. Parties: Identification and details of the Owner and Builder, including their legal status and contact information

2. Background: Context of the agreement, including the project overview and parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Price and Payment Terms: Agreement on price, payment schedule, and payment conditions

6. Timeline and Completion: Project schedule, milestones, and completion requirements

7. Builder's Obligations: Comprehensive list of builder's responsibilities, including quality standards and compliance requirements

8. Owner's Obligations: Owner's responsibilities including site access, approvals, and payment obligations

9. Materials and Workmanship: Standards for materials and workmanship quality

10. Variations and Changes: Process for handling changes to scope or specifications

11. Inspections and Approvals: Procedures for inspections, testing, and obtaining necessary approvals

12. Warranties and Defects Liability: Warranty terms and defect rectification obligations

13. Insurance and Indemnification: Required insurance coverage and indemnification provisions

14. Default and Termination: Circumstances and procedures for contract termination

15. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions

16. Force Majeure: Provisions for unforeseen circumstances and their handling

17. Governing Law: Specification of Saudi law and Sharia principles as governing law

18. Notices: Communication procedures and contact details for formal notices

19. General Provisions: Standard boilerplate clauses including assignment, waiver, and severability

What sections are optional to include in a Builder And Owner Agreement?

1. Subcontracting: Terms for engaging and managing subcontractors - include when subcontracting is anticipated

2. Intellectual Property Rights: Protection of designs and other IP - include for custom or unique architectural designs

3. Environmental Compliance: Special environmental obligations - include for environmentally sensitive projects

4. Security Provisions: Requirements for performance bonds or guarantees - include for high-value projects

5. Financing Arrangements: Terms related to project financing - include when external financing is involved

6. Health and Safety Requirements: Specific health and safety protocols - include for complex or hazardous construction

7. Quality Management System: Detailed quality control procedures - include for large-scale projects

8. Storage and Site Facilities: Requirements for on-site facilities - include for large projects requiring significant site presence

What schedules should be included in a Builder And Owner Agreement?

1. Schedule 1 - Construction Drawings and Specifications: Detailed technical drawings and specifications for the construction

2. Schedule 2 - Bill of Quantities: Itemized list of materials and quantities with associated costs

3. Schedule 3 - Construction Timeline: Detailed project schedule with milestones and completion dates

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment installments and timing

5. Schedule 5 - Required Permits and Approvals: List of necessary permits and approvals with responsibilities

6. Schedule 6 - Quality Standards and Testing Requirements: Specific quality standards and testing procedures

7. Schedule 7 - Insurance Requirements: Detailed insurance specifications and coverage requirements

8. Appendix A - Site Plan and Access Details: Site layout, access points, and logistics information

9. Appendix B - Material Specifications: Detailed specifications for all construction materials

10. Appendix C - Safety Procedures: Comprehensive safety protocols and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Commercial Property

Residential Property

Industrial Construction

Infrastructure Development

Hospitality Construction

Retail Development

Healthcare Facilities

Educational Facilities

Mixed-use Development

Government Infrastructure

Relevant Teams

Legal

Construction

Project Management

Operations

Procurement

Quality Control

Risk Management

Compliance

Property Management

Contract Administration

Technical Services

Development

Facilities Management

Relevant Roles

Construction Manager

Project Manager

Property Developer

Real Estate Manager

Contract Administrator

Legal Counsel

Construction Director

Site Supervisor

Procurement Manager

Quality Control Manager

Chief Executive Officer

Operations Director

Development Manager

Facilities Manager

Risk Manager

Compliance Officer

Technical Director

Architecture Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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